saudi arabia hvac market outlook - atlas marketing arabia hvac market outlook ... 3 saudi arabia...

M a r k e t I n t e l l i g e n c e . C o n s u l t i n g

S a u d i A ra b i a H VAC M a r ke t O u t l o o k

7 . S u s t a i n a b i l i t y a n d E n e r g y S a v i n g i n S a u d i H VA C R M a r k e t

T a b l e o f C o n t e n t

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S. No. Contents Page No.

1. Saudi Arabia HVAC Projects to watch out for 5

2. Insulation Market in Saudi Arabia 11

2.1. Market Size & Forecast 11

2.1.1. By Value 11

3. District Cooling Market in Saudi Arabia 13


3.1.1. By Value & Volume 13

4. Refrigeration Market in Saudi Arabia 15


4.1.1. By Value 15

5. Saudi Arabia HVAC R Major Players 16

6 Saudi Arabia HVAC R Market Outlook 18


6.1.1. By Value 19

7 Sustainability and Energy Saving in Saudi HVAC R Market 25

8 About Us & Disclaimer 29

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S. No. Figure Title Page No.

Figure: 1 Saudi Arabia Building Insulation Market Size, By Value, 2010-2020F (USD Billion) 11

Figure: 2Saudi Arabia District Cooling Market Size & Forecast, By Value (USD Billion) & Volume

(Million TR), 2010-2020F13

Figure: 3 Saudi Arabia District Cooling Market Share in GCC, By Value, 2012 14

Figure: 4 Saudi Arabia Refrigeration Market Size & Forecast, By Value, 2010-2020F (USD Billion) 15

Figure: 5 Saudi Arabia HVAC R Market Size & Forecast, By Value, 2010-2020F (USD Billion) 19

Figure: 6 Saudi Arabia Market Share, By Region, By Volume, 2014 & 2020F 21

Figure: 7 Saudi Arabia Hotel Chains, By City, By Volume, 2013 23

L i s t o f F i g u r e s

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S. No. Table Title Page No.

Table: 1 Upcoming Mega Economic Cities in Saudi Arabia 5

Table: 2 Ongoing Mega Construction Projects in Saudi Arabia 6

Table: 3 Ongoing Metro Rail & Railway Projects in Saudi Arabia 7

Table: 4 Upcoming HVAC Projects/Tenders in Saudi Arabia 8

Table: 5 Saudi Arabia Major Upcoming Hotels & Other Details 9

Table: 6 Saudi Arabia Residential Insulation, By City, 2014 (Percentage) 12

Table: 7 Saudi Arabia HVAC R Major Players & Other Details 16

Table: 8 Saudi Arabia EER and Star Ratings for Air Conditioners 25

Table: 9 Saudi Arabia Mandatory Energy Efficiency Ratio, 2013 26

Table: 10 Saudi Arabia Building Thermal Insulation Regulations 27

L i s t o f T a b l e s

1 . S a u d i A r a b i a H VA C P r o j e c t s t o w a t c h o u t f o r

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© TechSci Research

Standing at about USD38.5 billion, Saudi Arabia’s construction sector contributed around 8% to the

country’s GDP in 2014.

Due to rapidly growing population and increasing religious tourism in Saudi Arabia, the government has

announced a number of construction projects valued at around USD80 billion to be implemented in the

coming years. These include huge projects like construction of Economic Cities, metro rail projects, etc.

These mega projects with huge investments are set to increase the demand for HVAC systems in both

Commercial as well as Residential sectors over the next five to fifteen years.

Economic Cities Location Year of completion Investment Area

King Abdullah Economic City

(KAEC)Rabigh 2030 USD74.5 billion 168 sq. km

Knowledge Economic City

(KEC)Madinah 2020 USD6.67 billion 8 sq. km

Jazan Economic City (JEC) Jazan 2035 USD25 billion 100 sq. km

Prince Abdul-Aziz Bin Mousaed

Economic City (PABMEC) Ha’il 2025 USD6.67 billion 156 sq. km

Table 1: Upcoming Mega Economic Cities in Saudi Arabia

Source: Organisation for Economic Co-operation and Development


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Apart from these economic cities, there are various other mega projects that would offer huge opportunities for

HVAC market in Saudi Arabia. These projects include construction of industrial cities, Skyscrapers and various

housing projects across Saudi Arabia.

The housing ministry of Saudi Arabia is set to implement its plan to build 500,000 homes across the country to

address growing housing demand due to the country’s rising population. This is expected to positively affect

the demand for HVAC systems in the coming years.

Projects Location Year of completion Investment

Kingdom Tower Jeddah 2019 USD1.2 billion

King Abdullah City for Atomic and

Renewable Energy (KACARE)Riyadh 2040 ---

Sudair Industrial City Sudair 2029 USD33.4 billion

Arriyadh Development Authority

(ADA)Riyadh Spans over next 15 years USD54.4 billion

Kingdom City Jeddah 2018 USD20 billion

500,000 Housing Units in Saudi

ArabiaSaudi Arabia 2025 USD68 billion

Table 2: Ongoing Mega Construction Projects in Saudi Arabia

Source: Organisation for Economic Co-operation and Development


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© TechSci Research

Commercial building space has been witnessing rapid growth in Saudi Arabia and this trend is likely to boost

the demand for HVAC units in future. Additionally, various railway projects like Riyadh Metro Rail Project,

Makkah Metro Rail Project and high speed railway projects like Madinah High Speed Railway, Riyadh Dammam

High-Speed Rail and Eastern Province Municipality-Dammam Metro are expected to increase the demand for

commercial air conditioning units in Saudi Arabia. Jeddah Metro Project is expected to be completed by 2022,

and thus is expected to boost the demand for centralized air conditioners in the country.

Project Length (Km) Promoter

North – South 2,800 SAR

Jubail - Dammam Railway link 115 SAR

Haramain High-Speed Railway 450 SRO

Landbridge 950 SAR

Riyadh Metro 176 ADA

Makkah Metro 114 MMRTC

Jeddah Metro 108 JDURC

Dammam Metro 150 EP Municipality

SRO Upgrade 450 SRO

GCC (additional Saudi side only) 400 SRO

Table 3: Ongoing Metro Rail & Railway Projects in Saudi Arabia

Source: Middle Eas t Bus iness Intelligence


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© TechSci Research

Hospitality sector in Saudi Arabia was worth around USD15 billion in 2012. Due to the country’s religious significance, Saudi

Arabia is one of the largest tourist destinations in the GCC region. This has led to increase in number of hotels and other

luxury complexes in the country, which is boosting the demand for HVAC units, especially in the VRF segment, thereby

boosting the market share of hospitality and commercial sectors in the country’s HVAC market.

Upcoming HVAC Projects/Tenders Deadline Location

Developing The Air Conditioning Electrical Work In The

Ophthalmology Specialist Hospital In Thahran And The Public

Hospital Of Thahran. , Saudi Arabia29-Jun-15 Thahran, Saudi Arabia

Supply to Replace central air Conditioning Units King Abdullah

cultural centre, Dammam.28-Jun-15 Dammam

Replacement of air Conditioning for Guest Buildings in King

Khalid Military City29-Jun-15

King Khalid Military City

Supply and Installation of Air Conditioning Units and a Variety of

Jubail Commercial Port.04-Aug-15 Jubail

Operation and Maintenance of Air Conditioners and Chilling,

Heating and Ventilation Equipment in Women Colleges22-Jun-2015 Dammam

Maintenance Services Of Air Conditioning Devices (AC) AndElevators Of The Amanah Building And Its Municipalities 18-Jun-2015 Jeddah

Table 4: Upcoming HVAC Projects/Tenders in Saudi Arabia

Source: Global tenders database


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© TechSci Research

Table 5: Saudi Arabia Major Upcoming Hotels & Other Details

Hotel Location Company Number of Rooms Opening

JW Marriott Hotel Makkah Makkah, Saudi Arabia Marriott International 639 2016

Adagio Jeddah Malik RoadMidscale Jeddah, Saudi

ArabiaAccor 77 Apartments 2016

Ibis Al KhobarEconomy Al Khobar,

Saudi ArabiaAccor 234 2016

Novotel Jizan CornicheMidscale Jizan, Saudi

ArabiaAccor 205 2016

Radisson Blu Riyadh Ring

RoadRiyadh, Saudi Arabia The Rezidor Hotel Group 252 2016

Park Inn Residence Riyadh Al

SahafaRiyadh, Saudi Arabia The Rezidor Hotel Group 170 2016

Radisson Blu Residence

Riyadh's Diplomatic QuarterRiyadh, Saudi Arabia The Rezidor Hotel Group 110 2016

Four Points by Sheraton

MakkahMakkah, Saudi Arabia Starwood Hotels & Resorts 451 2016

Le Meridien Riyadh Riyadh, Saudi Arabia Starwood Hotels & Resorts 232 2016

Sheraton Makkah Hotel Makkah, Saudi Arabia Starwood Hotels & Resorts 532 2016

The Westin Makkah Makkah, Saudi Arabia Starwood Hotels & Resorts 513 2016

Damac Tower by Paramount

Hotels & ResortsRiyadh, Saudi Arabia Paramount Hotels & Resorts 235 2016

Ibis Madinah Madinah, Saudi Arabia Accor 190 2016

Suite Novotel Yanbu Yanbu, Saudi Arabia Accor 120 2016

Ibis Jeddah Malik Road Jeddah, Saudi Arabia Accor 177 2016


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Hotel Location CompanyNumber of

Rooms Opening

Park Inn by Radisson Residence

Riyadh Al SahafaRiyadh, Saudi Arabia

Carlson Rezidor Hotel

Group170 2016

JW Marriott Hotel Jeddah Jeddah, Saudi Arabia Marriott International 370 2016

DoubleTree by Hilton Makkah Makkah, Saudi Arabia Hilton Worldwide 806 2016

Staybridge Suites Jeddah Alandalus

MallJeddah, Saudi Arabia IHG 164 2016

Courtyard by Marriott Makkah Makkah, Saudi Arabia Marriott International 432 2017

JW Marriott Hotel Jeddah Jeddah, Saudi Arabia Marriott International 370 2016

Shaza Jeddah Jeddah, Saudi Arabia Shaza Hotels 140 2017

Adagio Aparthotel Jeddah Alesayi

PlazaJeddah, Saudi Arabia Accor

200

Apartments2017

Adagio Aparthotel Riyadh Dhabab Riyadh, Saudi Arabia Accor 150 2017

Hilton Garden Inn Riyadh Andalusia Riyadh, Saudi Arabia Hilton Worldwide 130 2019

One & Only Jeddah Jeddah, Saudi Arabia Kerzner International 150 2019

Millennium Hotel Makkah (Umm Al

Qurah)Makkah, Saudi Arabia

Millennium &

Copthorne Hotels1400 2019

Saudi Arabia Major Upcoming Hotels & Other Details (Contd.)

Source: Hotelier Middle Eas t

2 . I n s u l a t i o n M a r k e t S i z e & F o r e c a s t

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© TechSci Research

The building insulation market in Saudi Arabia is projected to grow at a CAGR of around 7.39% during 2015-20.

Growth in the market is expected mainly on account of increasing concerns regarding energy saving, as building

insulation saves around 40% energy consumed in regulating air conditioning temperatures.

During 2010-14, the market grew at a CAGR of 4.72%. Higher growth is expected during the forecast period

due to recent regulations imposed by the government of Saudi Arabia on consumption of energy in 23 cities and

towns.

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2010 2011 2012 2013 2014 2015E 2016F 2017F 2018F 2019F 2020F

Figure 1: Saudi Arabia Building Insulation Market Size, By Value, 2010-2020F (USD Billion)

CAGR 2015-20F

By Value: 7.39 %

CAGR 2010-14

By Value: 4.72 %

Source: TechSci Research

2 . I n s u l a t i o n M a r k e t S i z e & F o r e c a s t

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© TechSci Research

Thermal insulation prevents the transmission of

heat from exterior building walls which capture

the heat energy from the sun and inhibits the

escape of hot or cool air from the interior, thereby

saving about 40% energy in air-conditioning by

preventing heat loss.

Thermal insulation in buildings in Saudi Arabia has

been made mandatory in 23 cities and towns.

Although, this would increase the construction

cost of buildings, it would reduce the power

consumption, primarily on account of air

conditioners, in these buildings.

City % Home Insulated

Jeddah 15

Riyadh 50

Qassim 3

Dammam 29

Abha 16

Hail 23

Jizan 24

Overall 26.5

About 70% of electricity consumption in Saudi Arabia is on account of air conditioners. To keep pace with

population growth in Saudi Arabia, around 500,000 new homes are required. With rising number of residences,

the demand for energy in residential segment is anticipated to double by 2030.

Only 27% of buildings in Saudi Arabia are thermally insulated. In Jeddah, 85% of the buildings lack insulation,

and the ratio is 72.6% in the Eastern Province and 50% in Riyadh. Lack of thermal insulation causes a lot of

energy wastage in Saudi Arabia.

Table 6: Saudi Arabia Residential Insulation,

By City, 2014 (Percentage)

Source: Saudi Center for Energy Efficiency at King Abdulaziz

City for Science and Technology (KACST).

3 . D i s t r i c t C o o l i n g M a r k e t S i z e & F o r e c a s t

Figure 2: Saudi Arabia District Cooling Market Size & Forecast, By Value (USD Billion) & Volume (Million TR),

2010-2020F

In 2014, district cooling market in Saudi Arabia grew at a CAGR of 22.12%, and is anticipated to grow further at

25.97% through 2020. Growth of district cooling is anticipated on account of its capability to control the internal

temperature in buildings, less noise generation and low electricity consumption as compared to other air

conditioning technologies available in the country.

Emission of harmful gases such as CO2 has been minimized due to environment friendly refrigerants used during

the process of district cooling. Moreover, increase in volume sales and average selling price is contributing to

growth in value market for district cooling in Saudi Arabia. The volume share of this technology grew at a CAGR of

13.15% during 2010-14, and is anticipated to grow at a CAGR of 17.25% over the forecast period due to the

growing construction sector in the country.


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2010 2011 2012 2013 2014 2015E 2016F 2017F 2018F 2019F 2020F

Market Size (USD Billion) Market Size (Million TR)

CAGR 2010-14

By Value: 22.12 %By Volume:

13.15%

CAGR 2015-20F

By Value: 25.97 %By Volume:

17.25%

3 . D i s t r i c t C o o l i n g M a r k e t S i z e & F o r e c a s t

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In 2012, Saudi Arabia district cooling market

accounted for around 26% value share in GCC

district cooling market. This share is expected to

rise over the forecast period, owing to the rising

adoption of district cooling across commercial

and industrial sector in Saudi Arabia. In addition

to this, residential sector is also adopting district

cooling air conditioning technology for better,

cheap and effective cooling.

© TechSci Research

Rest of GCC

Countries ,

74.00%

Saudi

Arabia,

26.00%

Figure 3: Saudi Arabia District Cooling Market

Share in GCC, By Value, 2012


District cooling consumes 50% lesser power compared to regular window ACs, split ACs or rooftop chiller ACs. In

a country like Saudi Arabia, where 70-80% of the total power is consumed for cooling purposes, district cooling is

feasible and also necessary.

4 . R e f r i g e r a t i o n M a r k e t S i z e & F o r e c a s t

Figure 4: Saudi Arabia Refrigeration Market Size & Forecast, By Value, 2010-2020F (USD Billion)


© TechSci Research

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2010 2011 2012 2013 2014 2015E 2016F 2017F 2018F 2019F 2020F

Market Size (USD Billion)

CAGR 2010-14

By Value: 11.80 %

CAGR 2015-20F

By Value: 12.27 %

Refrigeration market in Saudi Arabia grew at a CAGR of around 11.80% during 2010-14, and is projected to grow

at a CAGR of around 12.27% over the next five years. Growth in refrigeration market is anticipated on account of

rising demand, particularly from commercial and industrial sector in the country.

There has been considerable rise in the share of refrigeration in HVAC R market, particularly HCFC-free

refrigerants like R134A, R410A, which are energy efficient as well as eco-friendly in nature. The demand is

expected to rise over the forecast period as well.

The replacement market for HCFC-free refrigerants is also contributing towards the growth of refrigeration market

in the country.

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5 . S a u d i A r a b i a H VA C R M a j o r P l a y e r s

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© TechSci Research

S. No.Major

Players Founded/

Incorporated

Regional Headquarte

rsBusiness Division Key Personnel Joint Venture

Manufacturing Unit/

Distributors

Revenues(2014)

1 LG Shaker 2006 Jeddah

Air Conditioners, Electrical Products,

Household Appliances, Home

Entertainment System

Sheikh Hassan Shaker (CEO)

Jameel Al-Melhem(MD)

LG & Al Hassan Ghazi Ibrahim

Shaker Co. Ltd.

Manufacturing plant in Riyadh

USD415.17 million

2

Zamil Industrial

Investment Company

1998 Dammam

Steel Sector, HVAC Sector, Insulation Sector, Concrete

Sector

Mr. Ahmed Abdullah Al

Zamil –President &

Director

N/A

Two manufacturing

plants in Dammam

USD410 million

3 Samsung 1999 JeddahConsumer Goods

and Business Goods

Jae Cheon Park (GM) Jinhyuk Oh

(AC Business Manager)

N/A

Distributor United

Matbouli Group (UMG)

USD357.91 million

4 Gree 1991 Khobar HVAC

Mr Dong Ming Zhu – CEO Zhu

Jiang Hong-Chairman

N/A

Al-Asasyah Basic

Electronics Co. Ltd

USD286.32 million

5 Daikin 2013 RiyadhAir Conditioners, Air

Purifiers and Ventilation

Hiroshi Shimada (GM

RIRAC & Daikin ---USD157.48

million

Table 7: Saudi Arabia HVAC R Major Players & Other Details

Source: Company Webs ites

5 . S a u d i A r a b i a H VA C R M a j o r P l a y e r s

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© TechSci Research

S. No.

Major Players Founded/

Incorporated

Regional Headquar

tersBusiness Division Key Personnel

Joint Venture

Manufacturing Unit/

DistributorsRevenues

6 Voltas Ltd 2010 JeddahHVAC &

Electromechanical Projects

Ishaat Hussain Chairman, Anil

George President

Saudi Ensas Company for Engineering

Services

W.L.L

Olayan Voltas

Contracting Company

Ltd.

USD30 million

7 Midea 1968 Jeddah

Households Products,

Commercial Products and

Solution

Mr Jian Huang –President & Director Thomas Hollefeld (VP Global Product Line

Management)

N/AIbrahim

Shaker Co. Ltd.

USD20 million

8

Fujitsu General Limited

1936 Jeddah

Air Conditioners, Cameras, Air to Water heating

system, Air

Deodoriser, and Transmitters

Mr Mitsuhiro Oishi Chairman, Mr Junichi

Murashima -President

N/AZagzoog For

Home Appliances

N/A

9 Toshiba Carrier 1999 JeddahHVAC and Air to water heat pump

Mr. Akira Inoue (CEO & President

N/A

United Technologies Corp. & E. A.

Juffali &

Brothers for sales and marketing

N/A

10

Haier Middle East

Appliances1998 Dammam

Home Appliances, Consumer Electronics

Zhang Ruimin-Chairman & CEO Yang Mianmian-

President

N/AAl-Jabr

ElectronicsN/A

11 Hitachi Ltd 1910 Riyadh

Refrigerators, Washing Machines, Air Conditioners,

Tele Visions, Small

Appliances, Air Purifiers and

Vacuum Cleaners

Mr. Hiroaki Nakanishi - President

N/A

Hamad Abdulla Al-Essa & Sons

Co.

N/A

Source: Company Webs ites

6 . S a u d i A r a b i a H VA C R M a r k e t O u t l o o k

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Saudi Arabia has an arid desert climate, characterized by extreme heat and low annual rainfall. Due to the

topographical variation and two coastal lines, the country witnesses some regional variations in climate, but most

part of the country is flat with sandy desert and experiences high temperatures throughout the year.

The climatic conditions in the country have been the leading driver for the country’s HVAC market. The country’s

seasonal sales for air conditioners have been classified into two seasons, i.e., summer and winter seasons, with

former accounting for highest seasonal sales during 2014.

Summer season in Saudi Arabia usually spans from March to October with temperature ranging between 39ºC to

45ºC. In some of the places, such as Makkah, temperature rises up to 50ºC. The highest demand for air

conditioners is traditionally witnessed during June and July, particularly in the residential sector, as during this

time the temperature in the country is at its peak.

© TechSci Research


Figure 5: Saudi Arabia HVAC R Market Size & Forecast, By Value, 2010-2020F (USD Billion)


© TechSci Research

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2010 2011 2012 2013 2014 2015E 2016F 2017F 2018F 2019F 2020F

Market Size (USD Billion)

CAGR 2010-14

By Value: 9.61 %

CAGR 2015-20F

By Value: 13.73 %

Saudi Arabia HVAC R market grew at a CAGR of around 9.61% in value terms during 2010-14, and is further

projected to witness growth at around 13.73% during the forecast period. Boom in the construction sector in

Saudi Arabia is a major factor driving growth in the market for HVAC R.

Saudi Arabia faces extreme climatic conditions, with temperature often shooting up to 50˚C during peak

summer, thereby increasing the significance of HVAC in the country.

Continuous rise in the number of infrastructure projects such as expansion of the Makkah Haram, the Harmain

railways, various universities, hospitals, etc., is driving the demand for HVAC R in Saudi Arabia.

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The implementation of the new rules and regulations, laid down by Saudi Arabia government, regarding the use of

energy efficient HVAC machines, is another factor driving growth in the market for HVAC R in Saudi Arabia.

Other factors contributing to market growth are rising population and increasing number of multinational

companies in the country. In addition to this, with technological advancements the price of HVAC R units has

witnessed a decline, which has further contributed greatly towards the increase in demand.

Riyadh, Jeddah, Dammam and Mecca are some of the major regions in Saudi that have witnessed the highest

growth of HVAC R systems across the country, due to increasing demand for more energy efficient systems which

help in saving elctricity and input cost.

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© TechSci Research



Figure 6: Saudi Arabia Market Share, By Region, By Volume, 2014 & 2020F

Western Region

2014: 25.00%

2020F: 26.50%

Southern Region

2014: 12.00%

2020F: 10.50%

Eastern Region

2014: 15.00%

2020F: 14.00%

Northern Region

2014: 14.00%

2020F: 14.50%

East

North

Center

West

South

Eastern

Province

Riyadh

Tabuk

Madinah

Northern

Borders

Makkah

Bahah

Jawf

Jizan

NajranAsir

Qasim

Ha’il

Central Region

2014: 34.00%

2020F: 34.50%

Highest

Demand

Generator in

Saudi Arabia


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The central region of the country dominated Saudi Arabia HVAC R market in volume terms during 2014. Riyadh

province is one of the main contributors to HVAC R demand in this region. Central region accounts for highest

population in the country. Moreover, Riyadh is economically stronger than rest of the regions, with a large number

of people having higher disposable income. All these factors have led to higher sales of HVAC R systems and related

products in the central region of the country. Other than this, high rise building projects such as Al Rajhi Bank

Tower by 2016, Elegance Medical Tower by 2016, Al Majdoul Tower by 2016, etc., will surge the demand for HVAC R

system in the region during the forecast period.

Some of the most important provinces in the western region of Saudi Arabia include Mecca and Medina. Mecca and

Medina attract a large number of pilgrims every year, leading to vast growth in the number of hotels and resorts.

This, in turn, has led to higher demand for HVAC R in the region. In terms of revenue generation, this region is

moderately important for Saudi Arabia HVAC R market.

The market share of western region is projected to increase from around 25.00% in 2014 to reach 26.50% by 2020,

due to rising construction activities that are likely to be carried out in this region in order to accommodate

increasing number of pilgrims. Also, the replacement of HVAC systems is expected to play a crucial role in

increasing the share of western region.

© TechSci Research


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Being the most populous region in Saudi Arabia, Makkah has the largest number of hotel chains in the western

part of country. Being the holy city of Muslims, Makkah is also an investment hotspot for hotel and hospitality

companies.

Every year, around 3 to 4 million Muslim pilgrims visit Makkah Medina, which creates significant demand for hotels

and restaurants in the region. This is expected to buoy sales of HVAC in the region over the next five years as

well. Other key regions from where HVAC demand is likely to emanate include Riyadh, Jeddah and Al Khober.

© TechSci Research

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7

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24 3 3

5

Al Khober Jeddah Makkah Medina Riyadh

Economy and Middle class Upscale Luxury

Figure 7 : Saudi Arabia Hotel Chains, By City, By Volume, 2013

Source: STR Global

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© TechSci Research


The provinces in the eastern region of Saudi Arabia account for a moderate demand share of the country’s HVAC

systems market. The regional share of eastern region including Damam, Al Khobar, Jubail and Al Asha

accounted for about 15% in 2014, and this is expected to decline over the next five years. The primary reason

for the region’s low share is comparatively lesser population compared to other regions of the country. The per

capita income of the region is also low as compared to the other regions.

Southern and Northern regions accounted for over 12% and 14% of the HVAC sales volume in 2014,

respectively. Again, the HVAC market is small in these regions compared to other regions due to low population.

As compared to other regions, northern and southern region are less developed and the people are less aware

about high-end technologies, which are acting as the major factors restricting adoption of HVAC systems.

7 . S u s t a i n a b i l i t y a n d E n e r g y S a v i n g i n S a u d i H V A C R M a r k e t

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© TechSci ResearchSource: Saudi Standards , Metrology and Quality Organization

EER limits (Tested Value)

(Btu/h)/w at T1Star Rating

EER 18.1 10

18.1 > EER 16.8 9.5

16.8 > EER 15.6 9

15.6 > EER 14.5 8.5

14.5 > EER 13.4 8

13.4 > EER 12.4 7.5

12.4 > EER 11.5 7

11.5 > EER 10 6

10 > EER 9.7 5

Table 8: Saudi Arabia EER and Star Ratings for Air Conditioners

The Energy Efficiency Ratio (EER) for Air Conditioners is applied to units designed to operate in AC single phase

circuits (220 V or 230 V), or designed for dual voltage or voltage range including these values, and three phase

circuits (380 V or 400 V, 60 Hz). It covers units with capacities up to and including 70000 Btu/h (20 KW).

The Energy Efficiency Rating is determined in accordance with the following table, where the EER (Energy

Efficiency Ratio) is determined in accordance with the test procedures of the harmonized standards.

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© TechSci Research

Air

Conditioner

Appliance

Type

Cooling

capacity limit

(CC)

(Btu/h)

Mandatory EER

(Btu/h)/watt

Phase 1: 7 September 2013

Mandatory EER

(Btu/h)/watt

Phase 2: 1 January 2015

At testing

conditions T1

(35°C)

T1 (35°C) T3 (46°C)T1

(35°C)

T3

(46°C)

Window

type

CC <18,000 8.5 6.12 9.8 7.06

18,000

≤CC<

24,000

8.5 6.12 9.7 6.98

CC 24,000 8.5 6.12 8.5 6.12

Split type

and other typesAll Capacities 9.5 6.84 11.5 8.28

Saudi Standards, Metrology & Quality (SASO) is an organisation which is responsible for setting standards

for commodities & products, measurements, testing methods, meteorological symbols & terminology,

commodity definitions, safety measures, environmental testing, and other subjects approved by the

organization’s Board of Directors. SASO has set up energy efficiency standards for air conditioners, which

were modified in May 2013. SASO modified the Minimum Energy Performance Standard (MEPS) for the EER

under SASO 2663/2012 standard.

Table 9: Saudi Arabia Mandatory Energy Efficiency Ratio, 2013

Source: SASO


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Building Element

Stage 1: November 2014 Stage 2: January 2017

Zone 1 Zone 2 Zone 3 Zone 1 Zone 2 Zone 3

Roofs 0.31 0.37 0.42 0.2 0.24 0.27

Walls 0.53 0.61 0.7 0.34 0.4 0.45

Vertical Glazing2.67 SHGC-

0.25

2.67 SHGC-0.26

2.67 SHGC-0.27

2.67 SHGC-0.28

2.67 SHGC-0.29

2.67 SHGC-0.30

Energy Efficiency Rating (EER) is used for product

labeling, specifying the energy labeling requirements and

the Minimum Energy Performance Standard (MEPS)

requirements for single-package of window type, split-

system, split- system ducted air-conditioners using air-

cooled condensers, and heat pumps using air-cooled

condensers for residential, commercial and industrial

sector in accordance with SASO standards. Meeting these

standards helps in reduction of electricity consumption.

Table 10 : Saudi Arabia Building Thermal Insulation Regulations

Source: SASO

Source: SASO


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ISO 9001-2000 standard focuses on quality management system. This standard determines the quality

management principles, including process approach, system approach, continual improvement, customer

focus, etc.

ISO 14000 standard addresses various aspects of environmental management. The standard provides tools for

organizations, including air conditioner manufacturers, to identify and control their operational impact on the

environment.

OHSAS 18000 is an international occupational health and safety management system specification. The

standard is intended to help organizations, including air conditioner manufacturers, to address and control

occupational health and safety risks.

These standards are followed globally so that the quality production process and its environmental impact can

be improved continuously.


A b o u t U s & D i s c l a i m e r

© TechSci Research

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